Value delivery strategies at Sony

¶ … Value at Sony

In the past few decades, competition among companies that manufacture and sell consumer goods has dramatically increased. As a result, marketing strategies have emerged as crucial means of adding value to such companies. A few marketing problems could result in low or slow sales; marketing problems consist of an ineffective marketing message, inadequate marketing budget, targeting the wrong prospects, an inappropriate media mix, and failure to modify marketing efforts to properly reflect historic results (Siebart, 2007). Other problems include poor timing of the marketing campaign, ineffective marketing materials, the lack of initial follow-up, poor sales skills, and improperly focused sales efforts (Siebart, 2007). The majority of organizations can examine their marketing channels to determine whether a marketing or advertising problem exists. A review of the literature suggests that conducting a marketing audit that compares other's practices within the same industry can assist in identifying where improvement efforts need to be focused. One large company that has demonstrated extreme success as well as periods of unstability and weak sales is Sony. This paper will compare the various marketing channel strategies used at Sony, and will conclude by offering recommendations based on various channel strategies.

As demonstrated by Sony, implementing appropriate marketing channel strategies can ultimately add value to a company, turning it into a multi-million dollar success. For companies such as Sony that appear to be growing rapidly, an aggressive sales force can outstrip a company's ability to properly train and support its business lines. This problem can lead to a fatal downward spiral for the new business lines and products. As a means of remedying these problems, the company may want to consider the development or redesign of brochures, e-brochures, Web pages and logos, updating operations manuals, developing training program curricula, PowerPoint presentations, training aids and tests, and creating interior branding programs and other consumer marketing assistance (Siebart, 2007). In addition, a company must construct a plan for building cooperation in channel partnerships. Sony is run as a tight company where people are held accountable for their actions. This is demonstrated by the fact that if marketing employees did not perform satisfactorily or as required, they are fired. Sony has built a strong organization around accountability, and marketing employees choose to act in the way that they think is best.

Another important factor demonstrated by Sony is planning a marketing channel design that is more responsive to market needs. In determining which marketing channels to enter, companies must perform research, and follow what the research results reveal about the particular industry and consumers. Market research is key; it provides critical information and direction, identifies market needs and wants, product features, pricing, decision makers, distribution channels, motivation to buy. Timing of the product launch is also critical, and all elements of the process must be coordinated. Production must be on the same time schedule as the promotion, and the product must be ready when it is announced. Many products need to be timed to critical points in the business cycle. The new product must be tested to be sure that it has the features the customer wants, as well as making sure the distributor and sales organization are comfortable selling it. Sony also tests its advertising and promotion, as there are significant up-front selling costs involved in introducing new products, and all parties in the channel need assurance that the investment of time and money will be recovered.

Sony has also demonstrated a capability to manage the complexity of marketing channels by analyzing distribution in the marketing mix. The industry that Sony operates in is also very easy to enter, as many companies are able to manufacture cheap products overseas. In other words, all existing channels (local, regional, and global) are accessible to the competitors and opportunities for growth may be exploited (Kimerling & Sood, 1998). As a result, Sony faces a significant threat of substitutes, as there are many other shoe companies that can manufacture comparable products at a lower cost. Sony also faces counterfeiting, which is the manufacture of imitation products that are passed off as if they are the real product, and many copies are very hard to catch by customs officials. These products are cheaply made overseas and shipped to the U.S., where many go undetected as infringements of the brand. Sony has lost revenues to these companies, which can be set up and taken down overnight.